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The Lawn Shoppe is a national bakery that is known for its strawberry cheesecake. It makes 12 different kinds of cheesecake as well as many
The Lawn Shoppe is a national bakery that is known for its strawberry cheesecake. It makes 12 different kinds of cheesecake as well as many other types of bakery items. It has recently adopted an activity-based costing system to assign manufacturing overhead to products. The following data relate to its strawberry cheesecake and the ABC cost pools: Strawberry Cheesecake: Annual production Direct materials per unit Direct labor per unit 19,890 units $10.2 $2.04 Cost Pool Materials ordering Materials inspection Equipment setup Quality control Other Cost $81,600 75,777 110,160 73,440 102,000 $442,977 Cost Driver Number of purchase orders Number of receiving reports Number of setups Number of inspections Direct labor cost Total manufacturing overhead Annual activity information related to cost drivers: Cost Pool All Products Strawberry Cheesecake 102 70 Materials ordering Materials inspection Equipment setup Quality control Other 8,160 orders 377 receiving report 3,060 setups 3,060 inspections $2,040,000 direct labor 35 153 $39,780 X Your answer is incorrect. Calculate the total unit cost for the strawberry cheesecake. (Round answer to 3 decimal places, e.g. 15.254.) Total cost $ 1.11 per unit e Textbook and Media
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